Taxpayers are taking advantage of provisions in the One Big Beautiful Bill Act (OBBBA)—as are scammers and opportunists.

The IRS is warning taxpayers to be on alert for new scams. Scammers often take advantage of uncertainty surrounding new laws, and this one is no different. Here’s what you need to know.

Ghost Preparers Are Back

One concern is the return of “ghost preparers.” A ghost preparer is a tax preparer who isn’t on the IRS’s radar because they lack a Preparer Tax Identification Number (PTIN). To remain hidden, a ghost preparer will accept payment from a taxpayer to prepare a tax return but will not sign it, so the return will appear to be self-prepared. (For e-filed returns, the ghost preparer typically prepares the return but refuses to digitally sign it.)

By law, anyone paid to prepare or assist in preparing federal tax returns must have a valid PTIN. Paid tax preparers are required to sign the taxpayer’s return and include their PTIN.

With new and expanded credits under OBBBA, some of these preparers are promising large refunds by stretching or misapplying the rules. They may exaggerate eligibility, claim credits a taxpayer doesn’t qualify for, or make up deductions altogether. The problem? When the IRS comes calling, the taxpayer—not the preparer—is responsible for any errors, penalties, or interest.

🚩 Red flag: The preparer refuses to sign the return or provide a valid PTIN.

Tips and Overtime Deduction Scams

New deductions for tips and overtime are also drawing attention and abuse.

Under OBBBA, eligible taxpayers can deduct qualified tip income from taxable income (sometimes called “no tax on tips”), up to $25,000 annually, subject to income limits for the tax years 2025 to 2028. Only tips that are properly reported to employers and reflected on tax forms qualify.

OBBBA also allows a deduction for qualified overtime pay (sometimes called “no tax on overtime”). The deduction is limited to the premium portion of overtime (the “half” in time-and-a-half), up to a set annual cap ($12,500 for single filers). The deduction, which applies only to properly reported wages, is subject to income limitations. Like the tips deduction, it’s available for the tax years 2025 to 2028.

Some preparers are advertising “expert” help to maximize these deductions, often charging high fees and inflating the numbers reported on returns. In some cases, they promise unusually large refunds, guarantee eligibility, or claim documentation isn’t necessary.

In reality, OBBBA requires accurate reporting of qualified tips and overtime. Early information forms may not clearly break out these amounts, which can make things confusing—but that’s not a free pass to guess.

🚩 Red flag: The preparer can’t clearly explain how amounts were calculated or says documentation isn’t needed.

The Senior Deduction “Enrollment” Scam

The new, temporary deduction for seniors (sometimes referred to as “no tax on Social Security”) does not require enrollment, registration, or any kind of sign-up. Eligible taxpayers simply claim it when they file.

Despite the messaging, the OBBBA does not eliminate tax on Social Security benefits. Instead, it provides a temporary deduction of up to $6,000 per qualifying taxpayer age 65 or older (up to $12,000 for married couples), available from 2025 through 2028 and subject to income phaseouts. The deduction reduces taxable income but does not change whether Social Security benefits themselves are taxable under existing law. Importantly, the law is age-based, not benefit-based (whether you receive Social Security benefits does not impact the deduction).

Scammers are telling a different story. They may contact seniors by phone, email, text, or mail, claiming that immediate action is required to “enroll,” verify eligibility, or qualify for a deduction. Some ask for fees or personal information, including Social Security numbers or bank details. None of that is required.

🚩 Red flag: Anyone claiming you must enroll, register, or pay a fee to receive any deduction.

Fake Outreach About OBBBA Tax Breaks

Another variation involves messages claiming that taxpayers are “pre-approved” or automatically eligible for OBBBA credits or deductions.

These often come as emails, texts, or calls referencing “OBBBA refunds” or “OBBBA stimulus credits,” along with requests for personal or financial information. Some create urgency by suggesting benefits will be lost without immediate action.

The IRS does not pre-approve taxpayers for credits or deductions and will not contact you by email, text or phone to talk about your individual tax return.

🚩 Red flag: Claims of pre-approval or requests for sensitive private or personally identifying information tied to OBBBA benefits.

“Fast Refund” or Advance Payment Scams

Some scammers promise faster refunds based on OBBBA provisions—for a fee. They may claim they can speed up IRS processing, release funds early, or provide advance payments tied to new credits. The offers often come with “processing” or “release” fees.

There’s no legitimate way to bypass IRS timelines. The IRS says most taxpayers who e-file and choose direct deposit will receive their refund within about 21 days. Paper returns (again, assuming direct deposit) can take six to eight weeks because they require manual processing. Your refund may also be delayed if it has errors, missing information, or requires extra review. This year, some taxpayers are experiencing delays caused by issues with how refunds are sent—especially when direct deposit fails.

To check your refund status, use the “Where’s My Refund?” tool on the IRS website—there’s also an app. Usually, you can check your status within 24 hours of e-filing or about four weeks after mailing a return. You will need your Social Security number or ITIN, your filing status, and the exact refund amount shown on your return.

🚩 Red flag: Anyone claiming they can expedite your refund for a fee.

Social Media and Influencer Claims

Social media is also playing a role in perpetuating misinformation, with posts and videos claiming that “everyone qualifies,” promoting supposed “OBBBA loopholes,” or guaranteeing refunds. These messages tend to oversimplify or misrepresent eligibility rules and often direct users to questionable services.

To make you feel like the tip is exclusive, they may claim it’s the “one trick that your tax pro doesn’t want you to know.” Be skeptical. I promise you that if tax pros can save their clients money, they will tell you how.

🚩 Red flag: Guarantees of refunds or claims that everyone qualifies for OBBBA benefits.

What To Watch Out For

While the details vary, most of these scams share common warning signs, including requests for personal or financial information by text, email, or social media and promises of guaranteed or unusually large refunds.

New tax laws like OBBBA can create opportunities—but also confusion. When in doubt, rely on official IRS guidance and work with a qualified tax professional. And, of course, check back with Forbes for regular tax updates.

Remember: if it sounds too good to be true, it probably is.

© Forbes